FG Generated N1.43tn from VAT in First Quarter

•CIT declined to N984.61 billion from N1.13 trillion

James Emejo in Abuja

The federal government generated N1.43 trillion from Value Added Tax (VAT) in the first quarter of the year (Q1 2024), representing a 19.21 per cent increase compared to N1.20 trillion in Q4 2023, the National Bureau of Statistics (NBS) said yesterday.

This came as Company Income Tax (CIT) for the period under review dropped by 12.87 per cent to N984.61 billion from N1.13 trillion in the preceding quarter.

According to the Sectorial Distribution of Value Added Tax

(Q1 2024) which was released by the statistical agency, local payments for consumption tax stood at N663.18 billion, and foreign VAT payments at N435.73 billion, while import VAT contributed N332.01 billion.

Quarter-on-quarter, accommodation and food service activities recorded the highest growth rate with 59.15 per cent, followed by the activities of administrative and support with 47.79 per cent.

On the other hand, activities of extraterritorial organisations and bodies had the lowest growth rate of -57.01 per cent, followed by human health and social work activities with –27.73 per cent.

Manufacturing with 26.72 per cent; information and Communication17.42 per cent; and mining & quarrying activities 15.42 per cent, according for the top three largest contributors to VAT in Q1, the NBS noted.

Nevertheless, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.01 per cent, followed by activities of extraterritorial organisations and bodies with 0.03 per cent and water supply, sewerage, waste management, and remediation activities with 0.05 per cent.

However, on a year-on-year basis, VAT collections in Q1 2024 increased by 101.65 per cent from Q1 2023.

Similarly, for the companies’ profit tax, local payments accounted for N386.49 billion, while foreign CIT payment contributed N598.13 billion in the review period.

Quarter-on-quarter, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the highest growth rate with 330.42 per cent, followed by administrative and support service activities with 33.18 per cent.

On the other hand, activities of manufacturing had the lowest growth rate with –70.24 per cent, followed by electricity, gas, steam and air conditioning supply with –69.14 per cent.

In terms of sectoral contributions, mining and quarrying with 20.94 per cent; financial and insurance activities with 18.73 per cent; and information and communication with 12.56 per cent were the top three largest contributors to CIT in Q1.

Nonetheless, the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.02 per cent, followed by water supply, sewerage, waste management, and remediation activities with 0.07 per cent and Activities of extraterritorial organisations and bodies with 0.24 per cent.

However, on a year-on-year basis, CIT collections in Q1 2024 increased by 109.93 per cent from Q1 2023.